Operations Under Programs and Budgets Clause Samples
The "Operations Under Programs and Budgets" clause defines how an organization or entity will conduct its activities in accordance with established programs and approved budgets. This clause typically requires that all operations, projects, or expenditures align with pre-approved plans and financial limits, ensuring that resources are allocated and used as intended. For example, it may stipulate that no funds can be spent on activities outside the scope of the agreed-upon program or without budgetary approval. The core function of this clause is to maintain financial discipline and operational consistency, preventing unauthorized spending and ensuring that all actions support the organization's strategic objectives.
Operations Under Programs and Budgets. All Operations shall be conducted, expenses shall be incurred, and Assets shall be acquired consistent with adopted Programs and Budgets. Each Program and Budget shall provide for (a) accrual of reasonably anticipated Environmental Compliance expenses for all Operations contemplated under the Program and Budget, and (b) payment of all obligations of the Company under Underlying Agreements.
Operations Under Programs and Budgets. Except as otherwise provided in Sections 7.4 and 7.6, the operations of the Company Group shall be conducted, expenses shall be incurred, and Assets shall be acquired consistent with Approved Programs and Budgets. For clarity, subject to Sections 4.5(a) and 4.5(b), the Board of Directors has sole and final approval of Programs and Budgets, and any such approved Program and Budget shall be deemed to be an “Approved Program and Budget” for the purposes of this Agreement. Each Program and Budget shall be for a Budget Period of a calendar year (other than prior to FID, in which case such Programs and Budgets shall include both an aggregated annual budget as well as detailed budgets for each month comprising such fiscal year) and shall provide for: (a) accrual of reasonably anticipated Environmental Compliance expenses for all Company Group operations contemplated under the Program and Budget; (b) in reasonable detail, the scope, direction and nature of Company Group operations to be undertaken in respect of such period; (c) payment of all obligations of the Company under Underlying Agreements; and (d) in reasonable detail, the coverage and terms of the applicable insurance policies for the Company Group. The Manager shall send to the Members each Approved Program and Budget. The Manager shall have the right to spend such amounts notwithstanding such Approved Program and Budget within the parameters provided for in Section 7.4 and Section 7.6.
Operations Under Programs and Budgets. Except as otherwise provided in this Agreement, Operations shall be conducted, expenses shall be incurred and Assets shall be acquired consistent with Programs and Budgets duly adopted by the Board of Managers as detailed in Schedule 14.1.1. Each Program and Budget shall detail the Operations to be conducted and the objectives to be accomplished by the Company for the period of time set forth therein and shall include: (a) accrual of reasonably anticipated Environmental Compliance expenses for all Operations contemplated under the Program and Budget, and (b) payment of all obligations and liabilities of the Company and its Subsidiaries under leases, contracts and agreements of the Company and its Subsidiaries and all other costs and expenses necessary or appropriate for the development and Operation of the Properties and the long-term business success of the Company. The initial Program and Budget, which has been adopted by the Members, is attached as Schedule 14.1.2.